Tight ship earns Jozi good rating
Johannesburg, South Africa's economic hub, received an upgrade yesterday to its national and global ratings.The good news comes as Moody's Investor Services recently noted the city's prudence and consistency in managing its finances.Johannesburg mayor Parks Tau said: "The accolades now received are an affirmation of the correctness of our strategies in managing the finances of the city."Moody's upgraded Johannesburg for its improved financial performance in the past three years, the decline in the net direct debt from 35% in 2011 to 30% last year , and the R10.2-billion investment in capital infrastructure during the 2015 financial year.According to Tau, the city has maintained healthy liquidity levels of about R5-billion while embarking on a R100-billion capital expenditure programme over 10 years.The benefit of this dual upgrade is that credit spreads on the city's listed bonds should become narrower and make them more attractive to investors, while lowering the cost of new debt to fund capital expenditure...
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